CMA Final · Cost and Management Audit · Management Reporting Issues and Analysis
A management auditor reviewing the MIS of Kaveri Engineering Ltd finds that the monthly production report reaches the plant head 20 days after month-end, by which time corrective action is no longer practicable. Which attribute of a good management report is mainly lacking?
Timeliness is lacking. A report that reaches the plant head 20 days after month-end arrives too late for corrective action, so its usefulness for decisions is lost even if its figures are accurate, concise and comparable.
- ATimelinessCorrect
- BComparability
- CConciseness
- DAccuracy
Explanation
A report delivered after the period in which action could be taken loses its decision value. The problem described is delay, not the correctness of figures, length or lack of comparison with other periods. Hence timeliness is the deficient attribute.
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